Yandi mines emerge as a tough competition for Goa exporters
Thursday, 03 Sep 2009
Iron ore exporters in Goa said that Australia's Yandi mines have emerged as a tough competition.
According to Mr S Sridhar executive director of Goa Mineral Ore Exporters Association, the low grade iron ore produced by the relatively new Yandi mines in Western Australia and the region's relative proximity to China are posing a threat to Goa's exporters. He said that "China accounts for 80% of our ore exports. And the emergence of Yandi mines has certainly evolved as a threat."
He said that what has compounded the problem is that the Chinese government had slashed incentives for steel mills, which could impact their iron ore imports from Goa. He added that "We saw the best years of exports during the run up to the Beijing Olympics. I doubt such a time would come again. The demand for iron ore from Goa would definitely go down."
Mr Sridhar also said that while last year rates of low grade iron ore had fluctuated, assessment of the price for the forthcoming season could be made only by December.
